Forex Trading Terms

Description of the Broker's Trading Conditions

Essential influence on a choice of the financial intermediary and the subsequent opening of a real account renders trading conditions of Forex brokers. On their list experienced players and the beginning traders, first of all, pay attention to a spread because the spread is that indicator which allows estimating expenses and profitability of each transaction.

Brokerage companies understand that smaller spreads are the most attractive to traders, therefore, choose one of two ways:

  • Reduce the spread, and from each separate transaction the profit decreases, but the income from the total quantity of transactions – grows, respectively narrower spreads are profitable for clients;
  • Increase the spread in the case of which the amount of the made transactions decreases, but the profit is created thanks to the exposure of a big spread.

However, trading in the Forex market and conditions accompanying it aren't limited only to spread sizes, and includes a number of options and criteria which are provided by brokers for maintaining a trading activity.


Potential changes to trading conditions during the period 2-5 May
Potential changes to trading conditions during the period 2-5 May

Dear clients, On the 3rd of May, France will hold the second round of its presidential election. This may increase the level of risk involved in trading due to potentially higher vol...

RoboForex Stocks: new trading features, instruments, and conditions
RoboForex Stocks: new trading features, instruments, and conditions

 Dear Clients and Partners! We’re pleased to inform you that the latest update of Umstel trading terminal has introduced several changes: more trading instruments and modi...

CFDs on #L-IHG stocks – trading suspended
CFDs on #L-IHG stocks – trading suspended

Dear clients, Due to corporate events in InterContinental Hotels Group PLC (hotel business), the trading in CFDs on #L-IHG stocks will be suspended on 08.05.2017. All open positions ...

Changes in Binary Options trading
Changes in Binary Options trading

Please be informed that the following changes were introduced to Binary Options trading on the 25th of April: an opening of a one-directional trade on a single account for a single a...

Profitable Spanish Index is already in FreshForex trading Platform!
Profitable Spanish Index is already in FreshForex trading Platform!

27 April 2017Dear clients, FreshForex gladly introduces new trading instrument! We constantly continue to grow and offer our clients index #IBEX35 for trading. The leading FreshForex...

Important Notification – May Bank Holidays
Important Notification – May Bank Holidays

We would like to inform you that due to Labor Day and Buddha’s Birthday, the trading hours of various instruments will be affected between May 1 and May 4, 2017. The normal tra...

FreshForex Forecast: ECB Press-conference
FreshForex Forecast: ECB Press-conference

27 April 2017Dear traders, On April 27,2017 at 12.30 noon GMT European Central Bank (ECB) press-conference will be held. Leading FreshForex analyst Catherine Main tells what to expec...

Changes to Indices Trading on May 1
Changes to Indices Trading on May 1

Dear Traders, The following indices will not be traded on May 1, 2017: Europe 50 France 40 Germany 30 Germany 30 (Mini) UK 100 All other instruments will be traded without changes. W...

Change in trading conditions due to second round of French presidential election
Change in trading conditions due to second round of French presidential election

We’d like to inform our account holders that our marginal requirements will change due to the second round of the presidential election in France. The following changes will ap...

Incredibly Low Spreads on ECN accounts!
Incredibly Low Spreads on ECN accounts!

26 April 2017Dear clients, we would like to bring to your attention profitable ways to earn on ECN accounts! During the regular trading hours on major currency pairs (EURUSD, GBPUSD,...

FXOpen Increases Margin due to the 2nd Round of Presidential Vote in France
FXOpen Increases Margin due to the 2nd Round of Presidential Vote in France

Due to the 2nd round of Presidential Vote in France to be held on May 7th 2017, FXOpen will increase margin requirements up to 5 times their normal level starting from May 3rd 2017 w...

Margin requirements to be restored. The first round of elections in France is over!
Margin requirements to be restored. The first round of elections in France is over!

Dear clients! April 24, 2017, after the first round of presidential elections in France, the margin requirements will be switched back to the previous values between 13:00 GMT and 15...

New contracts
New contracts

Dear clients! We are happy to announce that starting from today we added 54 more contracts in the list of "CFD USA SHARES" in the "Fort Financial Services"&n...

Don't miss your chance to earn on elections in France!
Don't miss your chance to earn on elections in France!

24 April 2017Dear traders, the first round of the 2017 presidential elections held on April 23 had a huge impact on market volatility. Many financial instruments opened this week wit...

Important Notice – French Presidential Elections
Important Notice – French Presidential Elections

We would like to inform our clients that considering our recent notification regarding the French Presidential Elections, the margin requirements on all instruments have been automat...

FXOpen Warns of High Volatility and Increased Margin Caused by the Presidential Election in France
FXOpen Warns of High Volatility and Increased Margin Caused by the Presidential Election in France

Due to the Presidential Election, that will be held in France on April 23th 2017, you may experience high volatility on all financial instruments. In connection with this FXOpen may ...

Attention! Leverage changes!
Attention! Leverage changes!

Dear clients, please note that April 23, 2017 France will hold presidential elections, which is likely to result in considerable volatility growth on financial markets. In order to p...

French election: Weekend leverage extension
French election: Weekend leverage extension

On Sunday 23 April, round 1 of the French Presidential election will be held. Due to possible volatility that any outcome may cause to financial markets, Dukascopy will extend the we...

Fxglory announcement regarding French Presidential Election
Fxglory announcement regarding French Presidential Election

Dear Clients, Due to the French Presidential Election on the 23rd of April 2017 which will lead to extreme market volatility, thin market liquidity, abnormal spreads and price gaps i...

Margin Requirements Changes
Margin Requirements Changes

Margin Requirements Changes – 2017.04.20Dear clients, We would like to inform you that from 18:00 (GMT+3) on April 21 and until the end of the trading day on Apr...


Description of the Broker's Trading Conditions

Essential influence on a choice of the financial intermediary and the subsequent opening of a real account renders trading conditions of Forex brokers. On their list experienced players and the beginning traders, first of all, pay attention to a spread because the spread is that indicator which allows estimating expenses and profitability of each transaction.

Brokerage companies understand that smaller spreads are the most attractive to traders, therefore, choose one of two ways:

  • Reduce the spread, and from each separate transaction the profit decreases, but the income from the total quantity of transactions – grows, respectively narrower spreads are profitable for clients;
  • Increase the spread in the case of which the amount of the made transactions decreases, but the profit is created thanks to the exposure of a big spread.

However, trading in the Forex market and conditions accompanying it aren't limited only to spread sizes, and includes a number of options and criteria which are provided by brokers for maintaining a trading activity.

Trading Conditions of Forex Brokers

A main goal of the conditions provided by the companies is satisfaction of traders' requests, irrespective of their experience and skills in the sphere of currency transactions. Today brokers try to consider all current trends and Forex market requirements, providing a set of flexible options for carrying out an effective trading activity, informing clients in news blocks, both on the accompanying changes, and at the start of new tools and conditions. The most important trading conditions are given in this material.

  • Margin Call level, i.e. the level of a necessary margin when the broker can compulsorily close open deals of the trader, without notifying the client;
  • Stop Out level means the level of a necessary margin in case of which trading open deals are closed by the current broker quotes;

Types of Order Execution:

  • Instant Execution when execution of the order takes place at the price offered the broker. If the broker agrees with the price, the order will be performed, in case of rejection of the price by the broker, there is "requoting" (Requote) – the broker returns back suggested price;
  • Execution by Market in the case of this mode of order execution the broker makes the decision on its price, without its regulation with the trader;
  • Execution on Request when the broker informs the trader on execution of the order on stated price.
  • Stop Level determined in the pips(points) from market price. Behind borders of this level the broker allows to establish Take Profit or Stop Loss for the carried-out order;
  • Quoting type (five-digit or four-digit). Quoting with 4 signs after a comma is the most popular, five-digit in turn, interferes with accurate visual estimation of a condition of the fast market;
  • Minimum size of the deposit . When exists an option to open account with only several dollars, the beginner can practice in actual transactions, and more experienced trader to check both Forex trading strategies, and conditions of still unfamiliar company without special risks.